The Bank of England is expected to keep UK interest rates at 5.5% on Thursday, but analysts say there is a chance rates could be increased.

Last month, the Bank raised rates to their highest level since February 2001 as it tried to rein in inflation.

Most analysts expect the Bank to leave rates unchanged when it announces its decision at midday.

However, some commentators are calling for more increases, claiming that price growth is still dangerously quick.

The consumer price index (CPI), a main measure of inflation, is currently at 2.8%, well above the 2% target that the government has set.

Recent economic releases have shown that consumers and businesses are still confident about their future prospects, while house price growth has slowed but is still ticking along at an annual rate of close to 10%.

Not alone

Concern is brewing for people who took out fixed rate mortgages two years ago